IIf you’re one of those worker bees that likes to anticipate everything in life, maybe you’ve already maxed out your 401(k). Maybe you haven’t looked at it in a while, but you’ve been consistent with your deposits in your retirement account and recently discovered that you’ve maxed it out. Either that or the 403(b) accounts can only take a certain amount of money, but don’t feel stressed. There are ways you can continue to add to that retirement account, regardless of the maximum level of your 401(k) is.
All people who retire aim to live their life in the best possible way during their post-retirement years. The main plan is to have the best possible life during a time when you probably want to travel or spend more time with your loved ones. Before making decisions on how to continue saving your income, you must first ensure that you are on the right path to maximizing your 401(k) before retiring. Once that’s done, you can start planning the many options you have.
How to Better Save Money After Maximizing Your 401(k) and 403(b)
After making sure that you will reach the maximum on one of the two accounts, you must remember that 401(k) or other similar retirement accounts may allow you to contribute up to $19,500 per year. If you are 50 or older, the catch-up contribution is $6,500. It goes up to $26,000 per year. For a retiree, this amount of money is not bad for covering basic expenses and living a decent life in retirement.
In case you don’t know, you can always take the Individual Retirement Account (IRA) itinerary. Maximizing 401(k) and 403(b) doesn’t have to prevent you from reaching your retirement goals, so it’s a great option for you to keep saving. If you meet certain IRS guidelines and are under age 50, you can continue to save up to $6,000 before taxes in an IRA. Those 50 or older can add an additional $1,000, which means they could save $7,000 before taxes per year. Other options are Simplified employee pension (SEP), save with your spouse, increase your emergency fund, save in a personal annuity, save in a 529 plan and save on healthcare costs. The options are there, just look for them.